As reported in a NY Times article two years ago, the SEC charged Robert
Allen Stanford and his chief lieutenant, James M. Davis, in Feb. of 2009
with orchestrating and executing a "massive
Ponzi scheme" that involved $8 billion in CDs. (For more information, read the
full article
here.)

Regulators subsequently froze Stanford's assets, but the case didn't
progress because Stanford was deemed incompetent to stand trial. Investors
- many of who lost their entire savings - then turned to the Securities
Investor Protection Corporation (SIPC), which has been integral in helping
Madoff victims receive restitution, for help.

When the SIPC said it didn't think Stanford's investors would be
eligible for SIPC protection, a flurry of lawsuits were filed against
secondary institutions that may have received tainted funds from Stanford.
The lawsuit against Texas A&M is one such lawsuit.

"The Stanford parties were running a Ponzi scheme and paid Texas A&M
with funds taken from unwitting... investors," the complaint alleges.
"The plaintiffs are, therefore, entitled to disgorgement of the CD
proceeds the Stanford parties fraudulently transferred to Texas A&M."

The complaint alleges that A&M received 11 payments from Stanford Financial
from 2004 to 2008. A spokesman for the university said the payments were
part of a sponsored research agreement. No further statements were made.

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